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Seed Value Chain Mapping and Analysis of Finger Millet in Debub Achefer Wereda, Ethiopia

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Seed Value Chain Mapping and Analysis of Finger Millet in Debub Achefer Wereda, Ethiopia DSpace Institution DSpace Repository http://dspace.org Agricultural Economics Thesis and Dissertations 2019-10-04 SEED VALUE CHAIN MAPPING AND ANALYSIS OF FINGER MILLET IN DEBUB ACHEFER WEREDA, ETHIOPIA Nigus, Tadesse http://hdl.handle.net/123456789/9793 Downloaded from DSpace Repository, DSpace Institution's institutional repository BAHIR DAR UNIVERSITY COLLEGE OF AGRICULTURE AND ENVIRONMENTAL SCIENCE GRADUATE PROGRAM SEED VALUE CHAIN MAPPING AND ANALYSIS OF FINGER MILLET IN DEBUB ACHEFER WEREDA, ETHIOPIA MSc Thesis By Nigus Tadesse November 2018 Bahir Dar BAHIR DAR UNIVERSITY COLLEGE OF AGRICUTLURE AND ENVIRONMENTAL SCIENCES GRADUATE PROGRAM SEED VALUE CHAIN MAPPING AND ANALYSIS OF FINGER MILLET IN DEBUB ACHEFER WEREDA, ETHIOPIA MSc Thesis By Nigus Tadesse Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science (MSc.) in “Agricultural Economics” November 2018 Bahir Dar ii THESIS APPROVAL SHEET As member of the Board of Examiners of the Master of Sciences (M.Sc.) thesis open defense examination, we have read and evaluated this thesis prepared by Mr Nigus Tadesse Ferede entitled Seed Value Chain Mapping and Analysis of Finger Millet in Debub Achefer Wereda, Ethiopia. We hereby certify that, the thesis is accepted for fulfilling the requirements for the award of the degree of Master of Sciences (M.Sc.) in Agricultural Economics. Board of Examiners ______________ ________________ _______________ Name of External Examiner Signature Date ______________ ________________ _______________ Name of Internal Examiner Signature Date ______________ ________________ _______________ Name of Chairman Examiner Signature Date iii DECLARATION This is to certify that this thesis entitled “SEED VALUE CHAIN MAPPING AND ANALYSIS OF FINGER MILLET IN DEBUB ACHEFER WEREDA, ETHIOPIA” submitted in partial fulfillment of the requirements for the award of the degree of Master of Science in “Agricultural Economics” to the Graduate Program of College of Agriculture and Environmental Sciences, Bahir Dar University by Mr. Nigus Tadesse (ID. No. BDU0906146 PR) is an authentic work carried out by him under our guidance. The matter embodied in this project work has not been submitted earlier for award of any degree or diploma to the best of our knowledge and belief. Name of the Student _______________________ Signature & date _____________________ Name of the Supervisors 1) _________________________ (Major Supervisor) Signature & date_____________________ 2) __________________________ (Co-Supervisor) Signature & date_____________________ iv ACKNOWLEDGEMENTS Always, I am in the hands of God!!! God is everything for me. That is why God is the secret of my success. Always thanks to Almighty God!!! It is not possible to thank by referring names of all people and institutions that contribute for the accomplishment of this research work, but I want to deserve special mention. First I would like to thank my major advisor Dr. Zemen Ayalew for his priceless advice, insight and guidance to the completion of the research work. I similarly thank my co-advisor Dr. Derejie Ayalew in assistance and guidance starting from the inception of the research idea up to the completion of the thesis. I am highly indebted to both of you! I would like to appreciate and recognize the fruitful program of Integrated Seed Sector Development/ISSD Ethiopia. Since ISSD Ethiopia plays an inevitable role for the successful accomplishment of this research through granting me the research fund. My sincere gratitude and indebtedness is also extended to Dr. Amsalu Ayana (ISSD National Program Management Unit) for accepting my concept note and granting me the research fund on behalf of ISSD Ethiopia Program. I am highly indebted to ISSD Amhara Regional program Manager Mr. Ahimed and Finance Officer Mr. Getu for their cooperative assistance, for their facilitation to all logistics and timely response for all my requests. In addition, I would like to express my sincere appreciation and gratitude to Wereda and kebele level agricultural and rural development, trade and development administrative offices of the study area. I want also to take this opportunity to thank Ato Nigatu Desta for his motive advises. Last but not least my heartfelt thanks go to my dearest family for unlimited help and encouragement to see my success. v DEDICATION This Thesis manuscript is dedicated to my mother Wedie Abesha and my father Tadesse Ferede. Their contribution is an Engine for the success of my academic carrier and my life. vi ABBREVIATION ADLI Agricultural Development Led Industrialization APE Average Partial Effect BDS Business Development Service BoARD Beauro of Agriculture and Rural Development CSA Central Statistical Agency CBSS Community Based Seed System ESE Ethiopian Seed Enterprise FAO Food and Agricultural Organization GDP Gross Domestic Product GTZ Deutsche Gesellschaft fur Internationale Zusammenarbeit ILO International Labor Organization IMR Invers Mills Ratio LSBs Local Seed Businesses MoARD Ministry of Agriculture and Rural Development NARS National Agriculture Research System RSE Regional Seed Enterprise SNNP South Nation, Nationalities and Peoples SNV Stichting Nederland Vrijwilligers SWOT Strength, Weakness, Opportunity and Threat TLU Tropical Livestock Unit UNIDO United Nation International Development Organization vii ABSTRACT This thesis is focused on seed value chain mapping and analysis of finger millet in Debub Achefer Wereda of Ethiopia. The objectives of the study were to develop value chain map of the finger millet seed, identify determinants of household participation decision and level of participation in finger millet seed marketing and examine the performance of finger millet seed value chain. The study used both primary and secondary data. A total of 194 respondents that is 26 from traders and 168 from household farmers were interviewed using different structured survey questionnaires. Focus group discussion and key informant interviews were used. Unlike to marketing systems of finger millet grain, seed market is informal and has no licensed middlemen actors. Seed value chain map was developed and based on the map over 80% of marketed finger millet seed product is directly flow from producers to farmers and the producers have more power for making initial price. Both in finger millet grain and seed, farmers took the highest profit margins which are 375.5 ETB/qt and 669.05 ETB/qt respectively. Double hurdle model was employed to identify factors that determine market participation decision and intensity of participation in finger millet seed market. The model result showed that market distance have negative and literate household head and extension contacts have positive significant effect for participation decision and total finger millet output has positive significant effect for intensity of participation. The SWOT analysis result showed lack of trend for allocating land alone for seed production, trend of using grains for seed, absence of seed business association, absence of full extension package, expensiveness of the crop’s threshing activity in terms of time, cattle power and labor consumption and expansion of eucalyptus trees were the observed weaknesses and threats of the value chain. Establishing local seed businesses, developing full finger millet extension package, formalizing the seed market system, providing technical support for small land holders and introducing a finger millet variety having high grain and straw yield, high market demand and inexpensive threshing activity in terms of labor, time and cattle power are recommended for finger millet grain and seed value chain development. Key words: finger millet, seed, grain, value chain analysis, SWOT analysis, double hurdle. viii TABLE OF CONTENT Contents Page THESIS APPROVAL SHEET ----------------------------------------------------------------- iii DECLARATION --------------------------------------------------------------------------------- iv ACKNOWLEDGEMENTS ---------------------------------------------------------------------- v DEDICATION ------------------------------------------------------------------------------------ vi ABBREVIATION ------------------------------------------------------------------------------ vii ABSTRACT ------------------------------------------------------------------------------------- viii LIST OF TABLES ----------------------------------------------------------------------------- xii LIST OF FIGURES ------------------------------------------------------------------------------- xiii LIST OF APPENDECS TABLES ----------------------------------------------------------- xiv Chapter 1: INTRODUCTION .................................................................................................... 1 1.1 Background and Justification ...................................................................................... 1 1.2 Statement of the Problem ............................................................................................ 3 1.3 Research Objective ...................................................................................................... 5 1.4 Research Question ....................................................................................................... 5 1.5 Scope and Limitations of the Study ............................................................................ 5 1.6 Significance of the Study ............................................................................................ 6 1.7 Organization of the
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